Recent weeks have seen continuous falls in the gold price. Despite the bearish market, a few remain steadfast in the opinion that gold will soon prosper again. Eyeing history as a guide to the future, well-known advocate Peter Schiff wrote recently: “Unfortunately just like 1976, a true economic recovery is not just around the corner. More likely we are in the eye of an economic storm that will blow much harder than the stagflation winds of the Jimmy Carter years.” Events this week may further encourage those optimistic on gold – namely rising tensions in Egypt and the re-emergence of the European crisis, centred on Portugal.
Gold future prices in New York have been mostly positive this week, with Wednesday recording a lift of US$8.50, or 0.7%, to settle at US$1,251.90 an ounce. Silver rose along with gold, tacking on 39 cents, or 2%, to US$19.70 an ounce.